Debt can be necessary, but it can also be stressful. While it’s important to stay within your financial limits, there are smart ways to pay down your debt faster and lift that weight off your shoulders. The best thing is, the faster you pay down your debt, the more you end up saving.
One of the key ingredients to paying down your debt faster is to be organized. Make a list of all the debt you have owing, meaning your credit cards, your credit lines, vehicle loans, and mortgages, and take note of the interest rates for each. Determine which of your debts have the highest interest rates and pay those off first. By paying down the debts with the highest interest rates, you’ll be saving more money and reducing your amount owing faster.
Another way to speed up your journey to being debt-free is to negotiate lower interest rates with the companies that hold your debt. Let them know that you’re shopping around for a better rate, and they’ll likely find a way to accommodate you. For example, you can ask your credit card company if they have a card with a lower interest rate or apply for a debt consolidation loan or a line of credit. Either way, you’ll be reducing the amount of interest you’re paying overall, and that way you’ll be able to pay more down on your principal each month and chip away at that debt just a little bit faster.